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E-Commerce Strategy
Are you e-In or e-Out? That question should soon replace the ice-breaking astrological question, "What's your sign?" The inquiry asks if your company does e-commerce or is involved in e-business. If you want to stay profitable in the transportation business, your answer needs to be, "Yes!"
Freight brokers and transportation intermediaries are now deep into consideration of what their electronic strategies should be. There are pros and cons to being at the front of the curve. And they all involve money!
Whether to become a trading partner on the Internet is no longer the question. It's simply a matter of when, how and with how much emphasis. Internet investment is taking on a whole new spin for transportation intermediaries.
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Benefits of Jumping in Early
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Benefits of Waiting A While
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| Name recognition, connected with e-business
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Software costs will come down
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| Early start on building credibility
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Early bugs will be worked out
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| Opportunity to become proficient, before the stakes escalate
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You can benefit from the lessons learned by the pioneers
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| Builds reputation as innovator and market maker
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| Downsides of Not Waiting
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Downsides of Waiting
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| Higher cost for software
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You may never catch up.
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| Software may not be powerful enough
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Your best prospects may already be committed to others.
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| Within 6-12 months, there could be cheaper software that does a better job.
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You may disappoint customers or clients who hoped you could handle their e-business.
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Online tracking has already become a popular request of shippers. According to at least one industry survey, it is the report most frequently requested by clients and customers of transportation intermediaries. Since FedEx and UPS led the way to customer-empowered tracking, the software is assumed to be easily accessible, affordable and high on the list of "the least you could do for us."
Commitment to the Internet
As of January 1, suppliers to the major auto makers must be connected to the Automotive Network eXchange (www.anxo.com) - a private communication grouping that pulls all trading partners onto the same level of connectivity - the Internet. Those who aren't there are unacceptable trading partners.
ANXO is billing itself as "The world's premier multi-provider, business-to-business electronic commerce network." More than two years in the making, it has had buy-in from the outset from vendors looking for a common communication tool with their customers.
ANXO is a major indicator of the wave of e-business. (Generally speaking, e-business is business-to- business commerce over the Internet. E-commerce is business-to-consumer commerce).
Corporate Product
Vendors to transportation companies have recognized the need for Internet products and services. One of the evolutions of The Internet Truckstop (www.truckstop.com) is their corporate division, which provides the power behind websites. Their portfolio of web services includes the capacity to track shipments online.
The Internet Truckstop is at the forefront of information and training about the Internet for the trucking industry. One of their major initiatives is co-sponsorship, with Randall Publishing, of the Internet Technology Center at leading truck shows. An Internet café is stocked with dozens of computers. Truckers are invited to try them out, hands on, with technical assistance readily available. It is estimated that more than 30,000 truckers have taken advantage of the opportunity.
The Internet Truckstop is probably best known for their load matching service. They were the first to provide this service over the Internet, and have become the largest such service on the Internet. At the time of their first Internet & Technology Center sponsorship, in 1998, they had close to 11,000 sign-ons. Today, their sign-ons top 17,500.
These specific examples of growth and exclusivity show how important the Internet is for your business, right now. It's already starting to replace the once indispensable fax machine.
The Internet connects you to answers, contacts, BUSINESS! It provides services to help you and your shareholders thrive in the 21st century. Getting there takes much more than providing modems to a few key employees. Before the IS person takes over, you need planning, strategies and a systematic implementation program.
Schneider Enters E-Business
Schneider Logistics was an early entrant to the e-business market. They became the transportation service provider for PlasticsNet.com, an online trading exchange for the plastics industry. Software for the e-business was provided by Commerix, Inc.
Schneider already had the rating software used in this application. Commerix provided the connectivity.
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